Section 80D Medical Insurance

Section 80D Medical Insurance


Medical insurance is a must for each person nowadays and the government has provided tax deductions under section 80D. This exhilarated citizens to capitalize on medical insurance.

What is section 80D

All individuals and HUF can claim a tax deductions under section 80D for invest in medical insurance from their total income in a particular financial year. This deduction can be availed by investing in a health plan for yourself, your spouse and your dependent children. 

Budget 2018

Budget 2018 brought some alleviation for senior residents matured 60 years or more who acquire high clinical costs and can't purchase medical coverage arrangements due to prior conditions or can't bear the cost of the high premiums. 

Budget 2018 has corrected Section 80D of the Income Tax Act which permits derivation for medical use brought about on senior residents. This derivation can be guaranteed by the senior resident himself/herself or by his/her youngsters, if the latter is bringing about medical expenditure.

What is covered under medical expenditure?

Deduction for clinical use was presented by the Finance Act, 2015 for too senior residents (matured 80 years or more). It was additionally stretched out to senior residents (matured 60 years or more) in Budget 2018 who were generally not secured under any medical coverage strategy. In spite of the fact that clinical use isn't characterized anyplace in the Act, passing by the thought process, clinical consumption should cover each clinical cost whether these costs are secured under any medical coverage arrangement. In spite of the fact that clinical use isn't characterized anyplace in the Act, however passing by the thought process, clinical use should cover each clinical cost whether these costs are secured under any medical coverage strategy. In this way, you can say that costs, for example, meeting charges, medications, listening devices, etc can be asserted as a finding."


One of the conditions to guarantee the conclusion is that medical use must be acquired on the relatives or potential guardians who are matured 60 years or more. The law characterizes relatives as the individual himself, mate and ward youngsters. Another condition is that the individual for whom medical expenditure has been acquired ought not to be secured under any health insurance policy.

Deduction for individual

An individual can avail tax deductions for medical insurance for themselves, their spouse, and any dependent children. An additional deduction can be availed for insurance for parents as well over the age of 60 years. The table below describes the tax deductions:


Self, spouse, children


Total deductions

1. Individual and parents below 60 years of age

Rs 25000

Rs 25000


2.    Individual and family below 60 years of age but parents more than 60 years of age    

Rs 25000

Rs 50000

Rs 75000

3.    Both individual, family and parents are above 60 years of age

Rs 50000


Rs 1,00,000

4.    Member of HUF 

Rs 25000

Rs 25000

Rs 50000

5.    Noni individual resident

Rs 25000 

 Rs 25000 

Rs 50000

Deduction for HUF

A HUF can claim a tax deductions under section 80D for investment in medical insurance for any HUF members of the insured members is less than 60 years of age, the deduction will be Rs 25000 or will be rs 50000 if the insured member is 60 years of age and above.

Preventive health checkup

Payment made by taxpayers towards preventive health checkups will make them eligible for deduction up to rs 5000. It is within the overall limit of rs 25000 or rs 50000 whichever the case may be. This can also be claimed either by the individual for himself, spouse, dependent children, and parents.

Single premium health insurance policies

These new provisions has been introduced in budget 2018. As per this, a taxpayer who has made a lump-sum premium payment in a single year for policy valid for more than 1 year can claim a deduction equal to an appropriate fraction of the amount under section 80D. This can be decided by dividing the lump sum premium paid by the number of years in policy. However, this would again be subject to limits of rs 25000 or rs 50000 whichever case may be.


● Contribution towards health insurance premiums has to be made to scheme as directed by the central government or IRDA.

● Payment can be made in any mode but not cash

● Premium paid for any other relative cannot be claimed 

● Premium paid for any working children cannot be claimed

● In case of partial payments by one individual or parent, both of them can claim a deduction to the extent paid by cash

● Group health insurance premium provided by the company is not eligible for deductions


eStartIndia Team

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